fredag 26. november 2021

How China’s ‘common prosperity’ is a step forward

There is no shortage of Western analysts suggesting that President Xi Jinping’s “common prosperity” will set back the Chinese economy by taking wealth from the rich and giving it to the poor. The analysts’ logic, to some extent, was probably based on the Mao Zedong era’s “from each in accordance with ability and to which according to needs” policy.  That policy did disincentivize entrepreneurship and hard work, culminating in keeping China backward and poor until Deng Xiaoping reformed the economy in 1980.

However, the Communist Party of China has evolved from ideologically driven to practical economic development since then, applying economic principles when formulating and implementing policies. A case in point is the “common prosperity” policy.